DOB: Circle Trust Company Q&A

CIRCLE TRUST COMPANY
ADDITIONAL RECEIVERSHIP INFORMATION
 

Where is the information related to the Circle Trust Company on the Banking Department’s Web site?
 
The press release is posted to the Web site.  Additional information on limited purpose trust companies (trust banks) activities within Connecticut is also posted at this site.
 
Where is the Circle Trust Company (“CTC”) based?
 
CTC is headquartered in Darien, CT at One Thorndal Circle, Darien, CT and maintains a branch in Rutland, VT.
 
What operations are conducted at these sites?
 
Darien, Connecticut is the company’s main office of operations.  The Vermont office is primarily for trust processing services for other bank clients.
 
What services are offered by CTC?
 
Private trust services, retirement services (third party administration), stable value fund and bank trust services.
 
What does the closing of CTC mean for a customer’s account?
 
It is expected that the company’s operations will continue through the receivership period.  It is anticipated that accounts will transition smoothly and as soon as possible to a selected party or parties upon the sale of the company. 
 
How were the issues/problems at Circle Trust Company brought to the Banking Department’s attention?
 
Circle Trust Company, as a state chartered trust bank, was subject to regulatory oversight by the Connecticut Banking Department.  The Banking Department has been closely monitoring the company and its attempts to find a new owner and inject needed capital.
 
Why was CTC closed?
 
The Banking Commissioner determined that CTC did not satisfy the statutory capital requirements under Connecticut Banking Law and the Banking Commissioner sought a court supervised receivership.

What is the next step?
 
The Banking Commissioner is appointed by the Connecticut Superior Court as receiver of Circle Trust Company.  The Banking Commissioner has engaged Howard Siegel of Brown Rudnick as counsel and advisor for the receivership.  It is expected the company’s operations will continue through the receivership process.  The Banking Commissioner in his capacity as the court appointed receiver is charged with marshalling the assets and has engaged a selling agent for the assets of the institution.
 
When will a new owner of CTC be announced?
 
As soon as possible.  The Banking Commissioner as Receiver has engaged a selling agent and the sale process has already begun.  A new owner will be announced once a buyer has been identified.